We have concluded that we are the primary beneficiary with respect to certain VIEs, which are consolidated in our financial statements. In consolidating the VIEs, we consistently use the financial information most recently distributed to investors in the VIE.

All of the VIEs are collateralized loan trusts that were established to issue securities to finance the purchase of commercial bank loans and other permitted investments. The assets held by the trusts are legally isolated and not available to the Company. The liabilities of the VIEs are expected to be satisfied from the cash flows generated by the underlying loans held by the trusts, not from the assets of the Company. The Company has no financial obligation to the VIEs beyond its investment in each VIE.

Certain of our subsidiaries are noteholders of the VIEs. Another subsidiary of the Company is the investment manager for the VIEs. As such, it has the power to direct the most significant activities of the VIEs which materially impacts the economic performance of the VIEs.

The following tables provide supplemental information about the assets and liabilities of the VIEs which have been consolidated in accordance with authoritative guidance (dollars in millions):


	September 30, 2025
	VIEs		Eliminations		Net effect on consolidated balance sheet
Assets:
Investments held by variable interest entities	$	296.8	$	—	$	296.8
Notes receivable of VIEs held by subsidiaries	—		(114.8)		(114.8)
Cash and cash equivalents held by variable interest entities	23.3		—		23.3
Accrued investment income	1.0		—		1.0
Income tax assets, net	16.1		—		16.1
Other assets	5.5		(0.3)		5.2
Total assets	$	342.7	$	(115.1)	$	227.6
Liabilities:
Other liabilities	$	14.8	$	(0.9)	$	13.9
Borrowings related to variable interest entities	274.3		—		274.3
Notes payable of VIEs held by subsidiaries	114.8		(114.8)		—
Total liabilities	$	403.9	$	(115.7)	$	288.2


	December 31, 2024
	VIEs		Eliminations		Net effect on consolidated balance sheet
Assets:
Investments held by variable interest entities	$	433.8	$	—	$	433.8
Notes receivable of VIEs held by subsidiaries	—		(130.0)		(130.0)
Cash and cash equivalents held by variable interest entities	341.0		—		341.0
Accrued investment income	0.9		—		0.9
Income tax assets, net	15.0		—		15.0
Other assets	5.5		(0.2)		5.3
Total assets	$	796.2	$	(130.2)	$	666.0
Liabilities:
Other liabilities	$	225.5	$	(0.6)	$	224.9
Borrowings related to variable interest entities	497.6		—		497.6
Notes payable of VIEs held by subsidiaries	131.2		(131.2)		—
Total liabilities	$	854.3	$	(131.8)	$	722.5

The investment portfolios held by the VIEs are primarily comprised of commercial bank loans to corporate obligors which are almost entirely rated below-investment grade. At September 30, 2025, such loans had an amortized cost of $298.6 million; gross unrealized gains of $0.5 million; gross unrealized losses of $1.8 million; allowance for credit losses of $0.5 million; and an estimated fair value of $296.8 million.

The following table summarizes changes in the allowance for credit losses related to corporate securities held by VIEs (dollars in millions):


	Three months ended				Nine months ended
	September 30,				September 30,
	2025		2024		2025		2024
Allowance at the beginning of the period	$	2.3	$	2.8	$	1.3	$	3.1
Additions for securities for which credit losses were not previously recorded	0.2		0.2		1.3		0.6
Additions (reductions) for securities where an allowance was previously recorded	—		0.2		1.4		2.1
Reduction for securities disposed during the period	(2.0)		(1.4)		(3.5)		(4.0)
Allowance at the end of the period	$	0.5	$	1.8	$	0.5	$	1.8

The following table sets forth the amortized cost and estimated fair value of the investments held by the VIEs at September 30, 2025, by contractual maturity. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without penalties.


	Amortized cost		Estimated fair value
	(Dollars in millions)

Due after one year through five years	$	135.2	$	133.8
Due after five years through ten years	163.4		163.0

Total	$	298.6	$	296.8

During the nine months ended September 30, 2025, the VIEs recognized net investment losses of $6.1 million which were comprised of: (i) $6.9 million of net losses from the sales of fixed maturities and (ii) a decrease in the allowance for credit losses of $0.8 million. Such net realized losses included gross realized losses of $7.3 million from the sale of $88.2 million of investments.

During the nine months ended September 30, 2024, the VIEs recognized net investment losses of $12.5 million which were comprised of: (i) $17.7 million of net losses from the sales of fixed maturities; (ii) $3.9 million of gains related to the liquidation of a VIE; and (iii) an decrease in the allowance for credit losses of $1.3 million. Such net realized losses included gross realized losses of $18.9 million from the sale of $176.9 million of investments.

At September 30, 2025, the VIEs held: (i) investments (for which an allowance for credit losses has not been recorded) with a fair value of $169.5 million and gross unrealized losses not deemed to have credit losses of $1.4 million that had been in an unrealized loss position for less than twelve months.

At December 31, 2024, the VIEs held: (i) investments (for which an allowance for credit losses has not been recorded) with a fair value of $183.2 million and gross unrealized losses of $0.9 million that had been in an unrealized loss position for less than twelve months; and (ii) investments (for which an allowance for credit losses has not been recorded) with a fair value of $25.6 million and gross unrealized losses of $0.3 million that had been in an unrealized loss position for greater than twelve months.

The investments held by the VIEs are evaluated for impairment in a manner that is consistent with the Company's fixed maturities, available for sale.

In addition, the Company, in the normal course of business, makes passive investments in structured securities issued by VIEs for which the Company is not the investment manager. These structured securities include asset-backed securities, collateralized loan obligations, commercial mortgage-backed securities, agency residential mortgage-backed securities and

non-agency residential mortgage-backed securities. Our maximum exposure to loss on these securities is limited to our cost basis in the investment. We have determined that we are not the primary beneficiary of these structured securities due to the relative size of our investment in comparison to the total principal amount of the individual structured securities and the level of credit subordination which reduces our obligation to absorb gains or losses.

At September 30, 2025, we held investments of $598.3 million in various limited partnerships, in which we are not the primary beneficiary. These investments are included within other invested assets on the consolidated balance sheet and typically reported to us one quarter in arrears. At September 30, 2025, we had unfunded commitments to these partnerships totaling $639.4 million. Our maximum exposure to loss on these investments is limited to the amount of our investment and any unfunded commitments.